New Jersey Resources (NJR) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: 3.84%
• Average Volume (3M): 608.56K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.22
• Revenue Growth: 21.88%
• EPS Growth: 71.35%
• Country: US
• Employees: 1,372
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Gas
• EPS (TTM): 0.06
• Shares Outstanding: 100,451,370
• 10 Day Avg. Volume: 554,707
• 30 Day Avg. Volume: 608,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: 9.67
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $51.67
• Price Target Upside: 10.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $53.00 ▲(13.13% Upside)

New Jersey Resources' strong financial performance and attractive valuation are the most significant factors driving its stock score. The company's increased guidance and strategic investments further enhance its growth outlook. Technical indicators suggest stability, though cash flow management remains a concern. Overall, NJR is well-positioned in the regulated gas industry with substantial growth potential.

Positive Factors

Earnings Growth

The reaffirmation of NJR's long-term growth rate target of 7-9% is a positive indicator for future performance.

Financial Management

NJR's sale of its residential lease business simplifies its portfolio and captures a beneficial one-time gain, indicating strong financial management.

Regulatory Support

Approval of NJNG's expanded SAVEGREEN program indicates regulatory support for NJR's investment in state climate goals.

Negative Factors

Natural Gas Market Volatility

No guidance bump at NJRES despite volatile natural gas markets, which could have been a source of earnings upside.

Project Delays

Delays in NJR's CEV segment projects could hurt sentiment and threaten improved appreciation for NJR’s portfolio model.

New Jersey Resources Business Overview & Revenue Model

Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities. It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

How the Company Makes Money

NJR generates revenue primarily through the sale and distribution of natural gas to residential, commercial, and industrial customers in New Jersey. The company operates under a regulated utility model, which allows it to earn a return on investment based on approved rates set by the New Jersey Board of Public Utilities. Additionally, NJR earns income from its non-utility operations, including its renewable energy projects, which can provide additional revenue through power purchase agreements and tax incentives. Key partnerships with local governments and energy organizations also bolster its earnings potential, particularly in clean energy initiatives aimed at expanding the company's portfolio in the evolving energy market.

New Jersey Resources Financial Statement Overview

Summary

New Jersey Resources demonstrates strong financial performance with impressive profitability and revenue growth, indicating a positive trajectory. The balance sheet reflects a stable financial structure with moderate leverage. However, cash flow challenges, particularly in free cash flow, require attention to ensure sustainable capital management.

Income Statement

New Jersey Resources has shown strong income growth with impressive revenue and net income increases. The TTM Gross Profit Margin is approximately 40.12%, and the Net Profit Margin is 20.03%. Revenue has grown from $1.80 billion to $2.07 billion, indicating a solid growth trajectory. The EBIT and EBITDA margins are healthy at 29.98% and 41.10%, respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet reveals robust equity levels, with a Debt-to-Equity ratio of 1.38, suggesting moderate leverage. The Return on Equity (ROE) stands at 16.75%, indicating effective use of equity to generate profits. The Equity Ratio is 34.10%, showing reasonable financial stability. Overall, the company maintains a balanced leverage and equity position.

Cash Flow

Cash flow analysis shows some challenges, with negative free cash flow of -$99 million, though there's a positive operating cash flow of $502.9 million. The operating cash flow to net income ratio is 1.21, indicating solid cash flow generation from operations. However, the negative free cash flow suggests potential issues in managing capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.07B	1.80B	1.96B	2.91B	2.16B	1.95B
Gross Profit	831.69M	696.47M	610.48M	595.16M	438.04M	370.81M
EBITDA	851.96M	666.35M	594.06M	565.01M	433.52M	370.36M
Net Income	415.16M	289.77M	264.72M	274.92M	201.10M	163.01M
Balance Sheet
Total Assets	7.27B	6.98B	6.54B	6.26B	5.72B	5.32B
Cash, Cash Equivalents and Short-Term Investments	83.71M	1.02M	954.00K	1.11M	4.75M	117.01M
Total Debt	3.41B	3.52B	3.29B	3.13B	2.76B	2.51B
Total Liabilities	4.79B	4.78B	4.55B	4.44B	4.09B	3.67B
Stockholders Equity	2.48B	2.20B	1.99B	1.82B	1.63B	1.64B
Cash Flow
Free Cash Flow	-99.03M	-143.91M	-61.93M	-274.95M	-233.66M	-256.69M
Operating Cash Flow	502.88M	427.41M	478.99M	323.48M	390.95M	213.48M
Investing Cash Flow	-486.27M	-569.07M	-538.63M	-590.61M	-622.12M	-994.02M
Financing Cash Flow	62.34M	141.76M	59.70M	262.54M	117.78M	895.90M

New Jersey Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Neutral. The current price of 46.85 is below the 20-day moving average (MA) of 47.14, above the 50-day MA of 46.28, and above the 200-day MA of 46.64, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 34.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NJR.

New Jersey Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	77 Outperform	$4.75B	11.54	18.03%	3.84%	21.88%	71.35%
CPK	71 Outperform	$2.90B	21.97	9.25%	2.12%	19.02%	20.13%
SR	71 Outperform	$4.43B	16.19	8.37%	4.15%	-6.65%	11.47%
NWN	71 Outperform	$1.70B	16.37	7.36%	4.74%	8.40%	17.90%
OGS	68 Neutral	$4.51B	17.99	8.24%	3.55%	13.43%	6.49%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
SWX	65 Neutral	$5.68B	29.37	5.41%	3.14%	-10.07%	5.98%

New Jersey Resources Corporate Events

New Jersey Resources Enters Note Purchase Agreement

On August 21, 2025, NJNG entered into a Note Purchase Agreement with institutional investors, selling $200 million in senior notes to fund general corporate purposes, including refinancing debt and capital expenditures. These notes, secured by NJNG’s First Mortgage Bonds, reflect a strategic financial maneuver to bolster the company’s operational capabilities and maintain financial flexibility, while adhering to certain covenants and restrictions.

New Jersey Resources Reports Q3 2025 Financial Results

On August 4, 2025, New Jersey Resources reported its fiscal 2025 third-quarter results, revealing a consolidated net loss of $15.1 million compared to a $11.6 million loss in the same quarter of 2024. However, the company showed improvement in its net financial earnings, reporting $6.2 million in the third quarter of 2025, up from a loss of $8.9 million in the previous year. Year-to-date net income also increased significantly to $320.6 million from $198.6 million in 2024. The company raised the lower end of its fiscal 2025 net financial earnings per share guidance, reflecting strong operational resilience and the impact of a diversified business model. This adjustment underscores NJR’s confidence in achieving its long-term growth targets and delivering consistent performance for its shareholders.

New Jersey Resources Engages Investors in June 2025 Meetings

In June 2025, New Jersey Resources Corporation will engage with investors and analysts during meetings in London, Zurich, and New York, sharing insights through a slide presentation. These interactions aim to provide key information about the company’s operations and financial strategies, potentially influencing stakeholder perspectives and market positioning.